The Street.com article on carrier spending paints a dire picture. By checking with each company’s own statements, I find TSC slanted the picture considerably
thestreet.com
1) Verizon. TSC lists capX growth at 2%. Comments from this week’s analyst conference indicate the bulk will be spent on high growth businesses.
Must upgrade data IP space. Huge opportunity. Going after data market, enterprise market, multiple-dwelling market. Must do it off our own systems.
30% growth at DS-1 level and 50% at DS –3. Data has not slowed down.
Capital spending to support this business. To be long term player, you have to invest. Need capability/ capacity. You can’t fall behind. This will disappoint customers. Customers have choices. Growth in capital program. Nearly all in data.
2001: 3 to 4% rev. growth. We’ll grow wisely.
1000 new OC-192 networks. DWDM will be dominant technology as we evolve.
Some technologies for future were in long haul and now going in local.
All optical will come in as an overlay network.
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2) GlobalCrossing wasn’t included, but they’ve announced $10B for 2000-2001:
globalcrossing.com
The Company projects that it will maintain its previously announced plans to make capital expenditures of approximately $10 billion in the aggregate for 2000-2001. Capital spending for continuing operations is expected to be approximately $4.5 to $4.7 billion in 2001, an amount that includes approximately $0.7 billion of previously announced capital spending from the 2000 capital program for which payments will be made in 2001. The company estimates that its current business plan is fully financed.
3) Sprint --- shows the strongest growth
Sprint expands international network:
www3.sprint.com
Sprint Corporation (NYSE: FON) unveiled its international growth strategy today, making a commitment to expand its award-winning Internet backbone throughout Europe and Asia.
The expansion will connect 15 cities in 13 major European and Asian countries on Sprint’s global IP network by the end of 2001, and 35 countries by the end of 2003, creating the capability to serve a vast proportion of the world’s Internet market.
Sprint plans to connect key business centers in Europe with a 10 Gbps backbone, the first major telecommunications player to do so.
Sprint’s European headquarters will be in London, the location of Sprint’s first active Internet node. Sprint is already providing Internet access to customers in the United Kingdom.
Sprint plans to have IP nodes in 14 other European and Asian cities by the end of 2001, including Paris, Frankfurt, Amsterdam, Milan, Brussels, Stockholm, Copenhagen, Dublin, Hamburg, Munich, Sydney, Singapore, Tokyo and Hong Kong.
4) SBC --- TSC shows CapX decreasing by 2%. SBC’s announced there will be no change:
sbc.com
[Page 1 says capital spending will remain the same as last year.]
5) AT&T --- TSC shows CapX decreasing 3% and AT&T shows it similar to last year:
The company said it expects 2001 capital spending for the total AT&T to be similar to 2000, substantially all of which will be directed to AT&T’s growth businesses.
att.com
6) WCOM --- TSC shows CapX decreasing by 14% and WCOM gives a combined range of $8.5 to $9B. By taking the low end of the range, TSC was able to show a far more negative picture than may actually be the case. From today’s conference call:
Cap X for 2001: $8 to 8.5B wcom, and $500M on MCI group. And we will meet CapX numbers this year. (Not inc. Embratel.)
7) BellSouth --- TSC shows $5.7B and company guidance is for $5.5B to $6B. This time TSC took an average to get their decline of 8%.
bellsouthcorp.com
8) Qwest --- TSC has them increasing CapX by 6%. I can’t find numbers, but the following report says they’ll complete 14 more markets in 2001, since they’ve only done 11 to date, this seems like a big increase:
qwest.com
Qwest has completed local fiber networks in 11 markets and has introduced end-to-end broadband services to business customers, including Internet access, application hosting, integration of local area networks and long distance services. Qwest is on track to complete the remaining 14 local networks by the end of 2001.
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